Description

Taiwan Semiconductor (TSMC)’s $165 Billion Gamble: Will Its U.S. Expansion Undermine Its Global Edge?

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s most advanced chipmaker and a linchpin in the global semiconductor supply chain, is making a historic push into the United States. With a combined $165 billion committed to building six fabs, two advanced packaging facilities, and an R&D center in Arizona, TSMC aims to address strong customer demand from U.S.-based tech giants like Apple, NVIDIA, AMD, Qualcomm, and Broadcom. The first fab, using 4nm technology, has entered high-volume production, and construction on the second and third fabs is underway. These efforts are supported by both U.S. federal and state governments. However, this expansion raises fundamental concerns about cost inflation, strategic delays in other markets such as Japan, potential overcapacity, and widening gross margin dilution. Furthermore, geopolitical risks and tariff threats add further complexity. As TSMC ramps up its U.S. presence while juggling projects in Taiwan, Japan, and Europe, questions are mounting about whether this global pivot could challenge its historical efficiency and profitability.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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